Up to 24,000 overseas students should be studying in Irish schools and colleges by the end of the decade, according to a high-level report compiled by several Government Departments.
The report, which has yet to be published, says there is huge potential for growth in both third- and second-level sectors.
In a new departure, the report team of senior civil servants wants the Department of Education to examine the feasibility of attracting significant numbers of overseas students to second-level schools.
It says several secondary schools, especially in Dublin, have hundreds of unfilled places.
In a significant proposal, the report says educational institutions such as universities and colleges should retain extra funds generated from foreign students.
The report, Internationalisation of Irish Educational Services, says a new State agency, Education Ireland, should be established to launch a new drive to attract overseas students.
It says these could account for 15 per cent of the 160,000 students in third-level education by about 2010.
"There is significant scope for expansion" in the development of services targeting foreign students.
"Demand is increasing in all sectors and it is in the national interest that all parties and agencies work together to achieve common goals," it says.
Education Ireland, the report says, would be responsible for the promotion of Ireland as a centre of excellence in education.
A borrowing facility should be developed for the third-level sector which wishes to "develop facilities and market programmes for international students under the Education Ireland brand", the report says.
Overseas students account for about 7 per cent of third-level students in the Republic, a very low percentage by international standards. This compares with 15 per cent in the UK and 12 per cent in Australia.
Almost half of these are studying in the health and associated areas. Total earnings are estimated to be about €140 million, approximately €86 million of which comes directly from fees.
The separate English as a foreign language sector brings in about 200,000 students to the Republic every year and accounts for approximately €300 million in foreign earnings.
Acknowledging the visa difficulties of some foreign students, the report says the Department of Justice, Equality and Law Reform should be allowed discretion to establish "accelerated visa application procedures" for those applying to study in the State.
The Department should have discretion to refuse visas for educational institutions which do not have a recognised quality mark.
The report says a new quality mark would provide a code of conduct for the pastoral care of international students and the certification of schools teaching English as a foreign language.
A quality mark for third-level colleges would also be developed and could be used in their marketing campaigns.
The development of this would be overseen by the board of Education Ireland in close co-operation with the bodies responsible for educational and further education awards.
The interdepartmental working group on the Internationalisation of Education included senior officials from the Department of Education and Science; Foreign Affairs; Finance, Enterprise, Trade and Tourism; Arts, Sport and Tourism and the Department of Justice, Equality and Law Reform.